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Podcast: Offshore Tax with HTJ.tax
Episode: Timing of US Deferred Compensation After Moving to France
Description: When U.S. deferred compensation is paid after you become a French tax resident, timing becomes critical. The interaction between U.S. taxation and French worldwide taxation can materially affect your effective tax rate.In this episode, we break down how the foreign tax credit mechanisms workβand why large lump-sum payments can change the outcome.π«π· French Tax Treatment: Taxed on ReceiptOnce resident in France, you are taxed on worldwide income.Deferred compensation paid after relocation:β’ Is included in French taxable income in the year of receipt β’ Is su...